I am not hopeful that we are able to secularly raise productivity between 2 to 3% every year. It is a laudable objective but most people are bereaved of practical ideas how it can be achieved. It reminds me of LKY mistaken policy of using high wages to effect industrial upgrading as a logical response to rising cost pressure. Instead what we have is falling competitiveness and a serious recession.
The rise in foreign worker levies will increase cost to companies with very few of them able to raise productivity.